Correlation Between Invesco SP and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both Invesco SP and Amplify Cash at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Invesco SP and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco SP 500 and Amplify Cash Flow, you can compare the effects of market volatilities on Invesco SP and Amplify Cash and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Invesco SP with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco SP and Amplify Cash.
Diversification Opportunities for Invesco SP and Amplify Cash
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invesco and Amplify is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP 500 and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and Invesco SP is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Invesco SP 500 are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of Invesco SP i.e., Invesco SP and Amplify Cash go up and down completely randomly.
Pair Corralation between Invesco SP and Amplify Cash
Considering the 90-day investment horizon Invesco SP is expected to generate 1.14 times less return on investment than Amplify Cash. In addition to that, Invesco SP is 1.19 times more volatile than Amplify Cash Flow. It trades about 0.27 of its total potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.37 per unit of volatility. If you would invest 2,529 in Amplify Cash Flow on October 23, 2024 and sell it today you would earn a total of 95.00 from holding Amplify Cash Flow or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco SP 500 vs. Amplify Cash Flow
Performance |
| Timeline |
| Invesco SP 500 |
| Amplify Cash Flow |
Invesco SP and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco SP and Amplify Cash
The main advantage of trading using opposite Invesco SP and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco SP position performs unexpectedly, Amplify Cash can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amplify Cash will offset losses from the drop in Amplify Cash's long position.| Invesco SP vs. Invesco SP 500 | Invesco SP vs. Invesco SP SmallCap | Invesco SP vs. Invesco SP MidCap | Invesco SP vs. Invesco SP MidCap |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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